Our previous article on “Three Steps to Predictable Financial Results” outlined a control, profitability, growth philosophy. A business needs to be under control and understand how and where it makes money before it grows. When these steps are taken out of order, we frequently see serious unintended consequences of significant financial losses. In this article we’ll explore predictable profitability. Most middle market CEOs know if their overall business is making or losing m

Organizations are increasingly using data driven approaches to make business decisions. What was once a “nice-to-have” practice is now becoming a necessity to achieve a competitive edge. Though this approach seems easy and intuitive, it has proven to be a challenge for most. One of the biggest disadvantages is that data, in its raw form, is extremely cumbersome and difficult to understand. Business analytics is the statistical summarization of complex data into simple and pre

You have decided that a business turnaround is needed and now the next decision point is how to best approach this “daunting” endeavor. The first question on this topic is whether to do it internally or to hire external turnaround “experts”. Based on extensive experience, both on the inside and out, hiring external, professional turnaround assistance is critical to maximizing the probability of a successful business performance turnaround. At this point, you are probably sayi

Our previous article on “Three Steps to Predictable Financial Results” outlined a control, profitability, growth philosophy. A business needs to be under control and understand how and where it makes money before it grows. Time and time again we see businesses get these steps out of order and end up with serious unintended consequences of significant financial losses. In this article we’ll explore control. Control doesn’t mean one person makes every decision. It’s quite the c

The Monthly Business Review is an opportunity to bring the key management team members together to discuss what is their most important topic. How is the company performing against the expectations of the Strategic Plan and the annual Operating Plan? How are we doing, what needs to change and when? This meeting provides management the forum to engage in what we call “priceless conversations” about company performance and allows the team to reach consensus on the most critical

A business dashboard is a tool that allows management to visualize Key Performance Indicators (KPIs), metrics and other strategic data of the organization at a glance. With data storage becoming easier and more cost effective by the day, the dependence on dashboards to make management decisions is rapidly increasing. Businesses are developing dashboards to help convert data into information and then use that information to make key decisions. However, many businesses fail to

For most businesses, the signs that a turnaround is needed are obvious: cash problems with increasingly frequent infusions from the owners or other sources, a steady decline in operating performance with higher costs and lower sales, violation of bank contract covenants and threats from the bank to put you in workout. All of this leading to an unstable and declining revenue and profit picture with even the specter of bankruptcy becoming a possibility. Under these circumstanc

If you lay awake at night worrying about what next month’s financial results are going to be, there’s a three-step approach that will help you get, and stay, asleep. Highly predictable businesses subscribe to a “control, profitability, growth” philosophy. While this philosophy sounds very simple, it is sad how few companies practice it. Simply put, a business needs to be under control and understand how and where it makes money before it grows. Time and time again we see bus

Alignment is achieved when the company purpose and strategic direction is the focus of the work activities of managers and employees at all levels. When direction is clear, understood, and bought into by everyone, business results are improved and sustained. Alignment is the shortest distance between strategic direction and business results. Alignment is a process to communicate the company’s purpose and strategic direction to all employees and other stakeholders. Alignment